Ad-Funded Content To Drive Mobile Video Revenue Growth
The audience for mobile video continues to grow, with advertisers set to drive further revenue growth in the market in the coming years, a Strategy Analytics report has found.
According to Strategy, worldwide revenue from mobile video will reach US$25 billion by 2021, with advertisers seeking to reach the growing audience consuming content on smartphones and tablets.
Strategy states that advertising spending will drive two thirds of total mobile video market value by 2021, predicting that mobile video users will more than double to 2 billion by the end of 2022, equal to 36 per cent penetration among global mobile users.
“The strongest growth in mobile video revenue will come from advertising-funded content, as advertisers look to catch up with the increasing quantity of video consumption,” Wei Shi, Strategy analyst, wireless media strategies, commented.
“Advertising spending on mobile video will grow at a 28 per cent CAGR in the next five years.”
While social platforms such as Facebook, Twitter and WeChat are increasingly looking to video as a means of increasing user engagement rates while reducing churn, Strategy notes that it will offer potential for monetisation in future.
“Despite growing video consumption on mobile devices, advertiser expenditure on mobile video has yet to catch up with this growth,” Strategy director Nitesh Patel observed.
“Furthermore, new modes of mobile video services, such as live streaming platforms like Periscope and Facebook Live, are focused on building audience before revenue.
“Currently, social networks have launched live video streaming as a tool to increase user engagement and to extend the time spent by users while inside of social networks, but we expect direct monetisation to follow.”